Property information and analytics provider CoreLogic has rejected a second acquisition offer from investors Senator Investment Group LP and Cannae Holdings Inc.
CoreLogic’s Board of Directors once again unanimously rejected the offer, reiterating that it still significantly undervalues the company, raises serious regulatory concerns, and is not in the best interest of shareholders.
Senator and Cannae have previously contended that CoreLogic has refused to engage with their offer, and accused the firm of relying on a “smokescreen” of regulatory concerns and “poison pill” defense tactics to avoid engaging with them.
Since then, they have requested a meeting of CoreLogic shareholders to discuss replacing nine members of the CoreLogic Board with directors chosen by them.
“We remain open to all paths to create value,” said CoreLogic Chairman Paul Folino, “but are confident that continued successful execution of our current plan will produce value for our shareholders far in excess of $66.00 per share.”
Since the original acquisition proposal from Senator and Cannae, CoreLogic significantly increased guidance for the remainder of 2020, 2021 and 2022 based on the strength of its business, raised its quarterly dividend by 50%, and committed to a $1 billion share repurchase.
Frank Martell, President and Chief Executive Officer, commented: “We have transformed CoreLogic into a higher-margin, higher-growth company with a durable business model based on increasing recurring revenues.”
“CoreLogic is at an inflection point, poised for further expansion of our trading multiple, increased capital returns, and greater value-creation for all of our shareholders,” he added.